Textured Jersey reports 46% surge in Q4FY15 net profit

01 May '15

2 min read

Net profit hit a record level in fiscal 2015 driven by a 46 per cent surge in net profit at Sri Lanka based, Textured Jersey Lanka for the fourth fiscal quarter ended March 31, 2015.

In a press release, Textured Jersey said its net profit for the fourth quarter of fiscal 2015 zoomed 46 per cent from the fourth quarter of fiscal 2014 to Rs 512 million.

Resultantly in fiscal 2015, Textured Jersey recorded its highest ever annual net profit at Rs 1.3 billion, an increase of 16 per cent year on year.

According to chairman Bill Lam, the strong quarterly performance enabled the company conclude the year with a record profit despite the slowdown in sales experienced in the early part of the year.

For the quarter under review, it posted sales of Rs 3.8 billion, also up 16 per cent from the prior fiscal fourth quarter, mainly due to demand from its main customers getting back on track.

In addition, recently added capacity enabled the company to optimise capacity utilisation and product mix to achieve fourth quarter gross profit margin of 15 per cent as against 12 per cent in same quarter of last fiscal.

This in turn also allowed the company to increase its gross profit by 45 per cent to Rs 583 million for the reporting quarter and drive its fiscal 2015 gross profit to Rs 1.6 billion, up 11 per cent year over year.

Textured Jersey continued to maintain its near debt-free balance sheet as at 31st March 2015, with a net cash position of Rs. 1.9 billion.

Additionally, lower interest rates, combined with a marginally lower cash position versus the fourth quarter of fiscal 2014, led to net finance income dropping to Rs. 14 million in the fourth quarter of fiscal 2015.

Net finance income for fiscal ended March 31, 2015 touched Rs 58 million, down a massive 36 per cent, when compared to the previous fiscal.

Commenting on fiscal 2016, Bill Lam stated that the recently enhanced capacity and strategic investments coming into fruition will place the company on a solid growth platform.

Lam added by saying that the prospects of GSP+ being reinstated in the future would further augment current momentum. (AR)

Fibre2fashion News Desk - India